Despite a decline in March, the annual rate remains above what economists expect after an even stronger than originally reported February.
NEW YORK (CNNMoney.com) -- Sales of newly constructed homes are showing indications, ever so slight, that the housing decline may be near an end, a government report showed Friday.
The Commerce Department said new home sales fell 0.6% last month to a seasonally adjusted annual rate of 356,000. But that was from a rate of 358,000 in February that was revised up from the originally reported at 337,000 -- the level economists were expecting for March.
The net revision to the prior three months equals an increase of 31,000 units, according to Wachovia Economics Group. "This is clearly a better-than-expected number," said Michael Larson, a real estate analyst at Weiss Research. "Technically, yes, sales declined, but the last three months were revised higher and the raw number came in better than expectations. All signs are pointing to stabilization in market conditions, which is due to lower prices, Larson said. We still have a problem with unemployment, and that's why any rebound we see will be muted."
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